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news.The Gujarat wing of Indian Drug Manufacturers' Association (IDMA) is seeking termination of excise on pharma products. The wing expects to attract INR50bn of pharma investments in the Indian state, if the excise on pharma products is abolished.
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Business Standard quoted Kamlesh Patel, chairman of IDMA, Gujarat State Board, saying: “Currently, nearly 60% of the net pharma production in the country, amounting to around INR250bn, is from the excise-free zones, and small and medium players in the state are the worst-hit.”
Reportedly, pharma manufacturing facilities in Gujarat stands around 800, of which 70% are SMEs in contract manufacturing.
IDMA has approached the central government to remove the 4% excise on pharma products in the upcoming union budget for 2010-2011.
“This could act as a big boost for SMEs to set up shop here,” added Mr Patel.
Chirag Doshi, secretary of IDMA, said: “Pharma production in Gujarat is picking up now. We hope that by the end of this year, the state’s share will reach around 35% of national pharmaceutical production,” quoted the newspaper.